As a result, sufficient ground exists to revoke the registration of the Foundation

.1~1

AGENCE DU REVENU DU CANADA

'

Mr. John Xanthoudakis

1445 Stanley Street, Suite 1901 Montreal, Quebec H3A 3T1

SUBJECT: Notice of Intent to Revoke

BY REGISTERED MAIL

BN: 87644 4894 RR0001 . File

#:

Norshield Development Foundation I Fondation de developpement Norshield

Dear Mr. Xanthoudakis:

Thi·s is further to our letter dated September 6, 2005 (copy attached), in which you were invited to submit representations as to why the Minister of National Revenue

should not revoke the registration of Norshield Development Foundation I Fondation de developpement Norshield (hereinafter, the "Foundation") in accordance with subsection 168(1) of the Income Tax Act (hereinafter, the "Act").

Th~ auditor, after numerous attempts by telephone and in writing, was unable to contact the representatives of the Foundation and conduct an audit. You have also failed to respond to our letter dated September 6, 2005. As a result, sufficient ground exists to revoke the registration of the Foundation.

Consequently, I wish to advise you that pursuant to the authority granted to the Minister in subsection 168(1) of the Act and delegated to me, I propose to revoke the registration of the Foundation. By virtue of subsection 168(2) of the Act, the revocation will be eff~ctive on the date of publication in the Canada Gazette of the following notice:

Notice is hereby given, pursuant to paragraphs 168(1)(b), 168(1)(d) and 168( 1 )(e) of the Income Tax Act, that I propose to revoke the registration of the organization listed below and that the revocation of registration is effective on the date of publication of this notice.

Name . File Number

3002138

Business Number

87644 4894 RR0001 Norshield Development Foundation I Fondation de developpement Norshield Montreal, Quebec

Place de Ville, Tower A, 320 Queen Street, fh floor Ottawa, Ontario K1 A OL5

... 12

-2-

Should you wish to appeal this notice of intent to revoke the Foundation's registration in accordance with subsection 168(4) of the Act, you must file a Notice of Objection within 90 days from the mailing of this letter. This notice is a written statement setting out the reasons for the objection and all the relevant facts. The Notice of

Objection should be sent to:

Tax and Charities Appeals Directorate Appeals Branch

Canada Revenue Agency 25 Nicholas Street · Ottawa, ON K1A OL5 Consequences of a Revocation

As of the date of revocation of the registration of Norsliield Development

Foundation I Fondation de developpement Norshield, which is the date upon which the above-nqted notice is published in the Canada Gazette, .Norshield Development

Foundation I Fondation de developpement Norshield will no longer be exempt from Part I Tax as a registered charity and will no longer be permitted to issue official donation receipts.

Additionally, the Foundation may be subject to tax pursuant to Part V, section 188 of the Act. For your reference, I have attached a copy of the relevant provisions of the Act (Appendix "1") concerning revocation of registration and the tax applicable to revoked charities as well as appeals against revocation.

By virtue of subsection 188(1) of the Act, the Association will be required to pay a tax within one year after the effective date of revocation. The revocation tax is

calculated on prescribed form T-2046, "Tax Return Where Registration of a Charity is Revoked'. The return m·ust be filed and the tax must be paid on or before the day that is one year after the effective date of revocation. Form T-2046 along with the related Guide are also attached for your inf9rmation.

I wish to advise you that pursuant to subsection 150(1) of the Act, a return of income for each taxation year in the case of a corporation (other than a corporation that was a registered charity throughout" the year) shall without notice or demand therefore, be filed with the Minister in prescribed form containing prescribed information.

Attachments

Yours sincerely,

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·Elizabeth Tromp / Director General .:

Charities Division

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Canada

Revenue Agency

September 6, 2005

BY REGISTERED MAIL Mr. John Xanthoudakis

1901-1445 Stanley Montreal (Quebec) H3A3T1

Re : Norshield Development Foundation (the Charity), Fiscal year ended June 30, 2004; Charity's Business numbe~ 87644 4894 RROOOl

Sir,

We have been trying to reach you and Mrs. Santschi to take arrangements so that we can audit the ~ptioned charity. Moreover, registered letters sent to you and Mrs. Santschi dated August 23, 2005 remained unanswered.

The fact that we cannot have access to the books and records of the Charity is sufficient a reason to revoke the registration of Norsbield Development Foundation. In these circumstances, we hereby advise you that we will recommend to the Minister to revoke the Charity's registration.

Among the consequences of a revocati~n are the following :

. 1. Loss of the non-taxable status as a registered charitv: Norsbield Development Foundation becomes a taxable entity in accordance with Section I of the Income Tax Act (the Act).

2. The loss of the privilege to issue official tax receipts for income tax mn:poses : thus, giftS to Norshield Development Foundation will not be allowable as non- refundable tax credits (in accordance with Article 118.1(3) of the Act), or as an allowable expense for corporations, (in accordance with Subsection 110.1(1)a) of the Act);

3. The likelihood that a tax amount be payable in accordance with Part V, Article 188(1) oftheAct.

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Canada

. I

Agence du r-evenrJ du Canada

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Canada

Revenue Agency

Unless we ear from you within fifteen (15) days of the date hereof, the charities Directorate will decide to publish or not a notice of intent to revoke the registration of Norshield Development Foundation in accordance with the provisions of Subsection 168(1) of the Act.

For any question, please contact the undersigned at (514) 346-5891.

Truly yours,

Richard Parent Audit Division

Attachment : Appendix A : applicable provisions of the Act.

C/C: Mrs. Dora Santschi

Telephone: (514346-5891 Telecopieur: (514) 283-8208

Adresse: 305, bout. Renl!-Levesque Ouest, 7e etage Montreal QC H2Z 1A6

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Sans frais: 1-800-959-7383 (Particulier) 1-800-959-7n5 (Entreprise) Internet : · www.ccra-adrc.gc.ca

Canada